Physicians Realty Announces Pricing of $500.0 Million of 2.625% Senior Unsecured Notes Due 2031

Rhea-AI Summary

Physicians Realty Trust (NYSE:DOC) announced a $500 million senior unsecured notes offering at 2.625%, maturing in 2031. The proceeds, estimated at $495.7 million after discounts, will be used to repay debt and acquire properties, including those in the pending Landmark portfolio acquisition. The closing is scheduled for October 13, 2021, pending customary conditions. The offering follows an effective shelf registration statement filed with the SEC on February 27, 2020. The company focuses on acquiring healthcare properties leased to physicians and healthcare systems.

Positive

• Issuance of $500 million in senior unsecured notes to strengthen financial position and fund acquisitions.
• Proceeds aimed at repaying existing debt, enhancing operational flexibility.

Negative

• None.

MILWAUKEE--(BUSINESS WIRE)-- Physicians Realty Trust (NYSE:DOC) (the “Company”), a self-managed healthcare real estate company, announced today that its operating partnership, Physicians Realty L.P., a Delaware limited partnership (the “Operating Partnership”), priced an offering of $500.0 million aggregate principal amount of 2.625% senior unsecured notes due 2031 (the “Notes”). The closing of the offering is expected to occur on October 13, 2021, subject to customary closing conditions.

Net proceeds from the sale of the Notes, after deducting the underwriting discount and before deducting any fees and expenses of the Company and the Operating Partnership, are expected to be approximately $495.7 million. The Operating Partnership intends to use the net proceeds of the offering to repay outstanding indebtedness, including indebtedness under its unsecured credit facility and indebtedness on certain properties in the pending Landmark portfolio acquisition and for general corporate purposes, including, without limitation, working capital and investment in real estate.

J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc. and PNC Capital Markets LLC are serving as joint book-running managers for the offering.

The offering is being made pursuant to the Company’s and the Operating Partnership’s automatic shelf registration statement filed with the Securities and Exchange Commission (the “Commission”), which became effective on February 27, 2020. Copies of the prospectus supplement and accompanying prospectus may be obtained from the Commission’s website at www.sec.gov or by calling: J.P. Morgan Securities LLC collect at (212) 834-4533; Credit Agricole Securities (USA) Inc. at (866) 807-6030; or PNC Capital Markets LLC at (855) 881-0697. Before you invest in the Notes, you should read the prospectus in such shelf registration statement, the prospectus supplement related to the offering and other documents incorporated by reference in the prospectus and the prospectus supplement for more complete information about the Company, the Operating Partnership and this offering.

This press release is not an offer to sell, nor a solicitation of an offer to buy the Notes, nor shall there be any sale of these Notes in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Physicians Realty Trust

Physicians Realty Trust is a self-managed healthcare real estate company organized to acquire, selectively develop, own and manage healthcare properties that are leased to physicians, hospitals and healthcare delivery systems. The Company invests in real estate that is integral to providing high quality healthcare. The Company conducts its business through an UPREIT structure in which its properties are owned by the Operating Partnership, directly or through limited partnerships, limited liability companies or other subsidiaries. The Company is the sole general partner of the Operating Partnership and, as of June 30, 2021, owned approximately 97.6% of the partnership interests in the Operating Partnership.

Forward-Looking Statements

This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, “continue”, “intend” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include any statements regarding the Company’s strategic and operational plans, the Company’s ability to generate internal and external growth, the future outlook, anticipated cash returns, cap rates or yields on properties, the completion of the transactions described in this press release, anticipated closing of property acquisitions, ability to execute its business plan, and the impact of the Coronavirus and its variants, including the Delta variant and any future variants which may emerge (COVID-19) pandemic on the Company’s business. While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties are described in greater detail in the Company’s filings with the Commission, including, without limitation, the Company’s annual and periodic reports and other documents filed with the Commission. Unless legally required, the Company disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events or otherwise. For a discussion of factors that could impact the Company’s results, performance, or transactions, see Part I, Item 1A (Risk Factors) of the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2020.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211007006014/en/

Physicians Realty Trust

John T. Thomas, 214-549-6611

President and CEO

jtt@docreit.com

or

Jeffrey N. Theiler, 414-367-5610

Executive Vice President and CFO

jnt@docreit.com

Source: Physicians Realty Trust

FAQ

What is the purpose of the $500 million notes offering by Physicians Realty Trust (DOC)?

The offering aims to repay existing indebtedness and finance the acquisition of properties, including the Landmark portfolio.

When will the notes offering for Physicians Realty Trust (DOC) close?

The closing of the notes offering is expected on October 13, 2021.

What interest rate is associated with the senior unsecured notes issued by Physicians Realty Trust (DOC)?

The senior unsecured notes carry an interest rate of 2.625%.

How much net proceeds is Physicians Realty Trust (DOC) expecting from the notes offering?

The net proceeds from the offering are expected to be approximately $495.7 million.

Where can I find more information about the Physicians Realty Trust (DOC) notes offering?

You can find more information in the prospectus supplement on the SEC's website or by contacting the book-running managers.